An introduction to Oracle Rapid Planning

1. An introduction to Oracle Rapid Planning Reduce planning cycle time and make faster short-term decisions John Conlin CPIM Principal Solutions Consultant: Manufacturing & Value Chain Applications

2. Safe Harbor Statement The following preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. 2

3. Risk Management and Compliance Operational Flexibility Continuous Innovation Today’s supply chain executives’ agenda New world: continuously adapting to changing supply chain business model Uncertainty Volatility Virtualization Globalization Credit Crisis Risk Consolidation Compliance Chaos Changing Supply Chain Business Model CEO’s Agenda Drivers For Success Increased Shareholder Value and Sustainable Growth “What is required is a new type of decision support platform, one that integrates analytics and optimization. 15 years after the birth of Supply Chain Planning (SCP), we are now just starting to see analytics and optimization converge on a common platform” AMR Research Report “How to measure your supply chain today “

4. How to respond to rapidly changing conditions? Weekly and daily planning cycles are not sufficient to react to exceptions DEMAND CHANNELS SUPPLY CHANNELS Traditional monthly S&OP process Tier 1 Tier 2 Demand Review Supply Review Exec Review Customers Forecast & Sales orders BATCH CYCLE Orders Stores and DCs Consensus Forecast Tactical Supply Plan Demand increase today at key customer Fix quality issue with component right now (ECO) Assembly production line down for next two days Supplier unable to meet this week’s commitment ? ? ? ? STATIC TACTICAL PLANNING PROCESS • Tactical plan is released – Execution events only factored in during next planning cycle • No ability to quickly react to demand, supply, capacity, and engineering changes • High latency and too many challenges to bring external information into ERP to drive decisions • Broken S&OP process: too much latency to react quickly to latest demand signals

5. Better approach Event-driven planning and fast S&OP simulation DEMAND CHANNELS SUPPLY CHANNELS Real-time S&OP simulation process Tier 1 Tier 2 Simultaneous demand, supply and executive review Customers Forecast & Sales orders Orders Event-driven simulations Stores and DCs Demand increase today at key customer Fix quality issue with component right now (ECO) Assembly production line down for next two days Supplier unable to meet this week’s commitment RESPONSIVE RAPID PLANNING PROCESS • Understand impacts of supply chain events through fast incremental planning • Get visibility to changing conditions directly into planning – no ERP latency • Fast S&OP: Quickly simulate demand shaping actions and constrained supply

6. How Delivers

7. Oracle Rapid Planning Enabling event driven real-time planning • Empower planners with rapid what-if scenario planning • React quickly to supply chain events with fast incremental plan runs – make decisions in minutes • Easily manipulate plans (mass edits) • Enable fast sales and operations planning simulations • Leverage a strong UI for insightful analytics • Predictive and actionable insight via embedded analytics and spreadsheet-style UI • Compare exceptions and key performance indicators • Make faster decisions through collaboration • Planners collaborate on a single holistic plan • Multi-enterprise visibility and planning • Translate decisions into actions • Out-of-the-box integration with ERP • No latency: release directly to execution

8. Oracle Rapid Planning – Complements Strategic Network Optimization Advanced Supply Chain Planning Rapid Planning • Rapid Planning complements the weekly or daily tactical supply planning cycle as executed with Advanced Supply Chain Planning What are the impacts of choosing a dual sourcing strategy? What are the impacts of closing or opening new distribution centers? What are the cost and revenue impacts of entering a new geographical market? Which buy, make and transfer orders do I need to release to execution? What orders need to be rescheduled? What resources are overloaded? What orders are sourced by alternate suppliers? Can I commit to a key customer’s hot demand in the next minutes? What would the impact of an ECO be if I’d implement it in the next hr? My supplier has a quality problem, can I make orders on time today by using alternates or substitutes? Will running overtime today improve my schedule? Recommendations Recommendations Recommendations Sourcing rules Optimized supply network Rationalized assets Reschedule, create, cancel buy, make, and transfer orders Simulated exceptions and performance indicators, and buy, make and transfer order recommendations Daily or Intra-Daily Weekly or Daily Monthly

9. Oracle Value Chain Planning solution Complete ●Open ● Integrated ● Modular Service Parts Planning Demand Signal Management Order Promising Demand Management Risk Management Plant Scheduling and Monitoring Performance Management Sales and Operations Planning Collaboration and Vendor Managed Inventory Trade Promotion Management • Single source of truth • Integrated with ERP • Web services enabled Supply Chain and Distribution Planning

10. Oracle Rapid Planning Reduce planning cycle time and make faster short-term decisions • Empower planners with rapid what-if scenario planning • Use a more productive UI for insightful analytics • Make faster decisions through collaboration • Translate decisions into actions

11. React quickly to supply chain events Perform fast simulations and compare different planning scenarios • Event-driven, fast, incremental planning • Respond to demand and supply changes • Respond to engineering changes • Respond to demand shaping activities • Perform fast S&OP simulations • Create what-if scenarios quickly • Copy plans in seconds • Compare scenarios to see differences • Easily manipulate plan input • Mass edit planning data • Incorporate data not available in ERP • Make better decisions faster • Automate planning decisions • Account for key constraints

12. Event-driven, fast, incremental planning Weekly/Daily Can I accept a new “hot order” from a key customer and let them know right away? Tactical Supply Plan (ASCP) What is the impact of releasing an ECO to address an immediate product quality issue? What end demand is impacted due to a sudden supplier component shortage? S&OP Plan (Demantra) What orders should I prioritize to minimize impacts of machine breakdown? Fast Simulation Plans Would it be ok to schedule the new promotion earlier? Could I fulfill orders earlier to meet my end of quarter numbers? Demand Plan (Demantra) Intra-day

13. Enable rapid S&OP simulation Provide supply constraints for Sales and Operations Planning • Integrated with Demantra Real-Time Sales and Operations Planning to evaluate supply constraints • Quickly and interactively simulate impact of demand changes on the supply picture • Seeded templates for supply review, allocation decisions, and capacity review • Real-time S&OP supply simulations • Seamless S&OP workflow to plan demand and supply simultaneously and interactively Seamless S&OP Workflow Demantra Demand Management Rapid Planning Forecast Promotions NPIs Constrained supply Demantra Real-Time Sales and Operations Planning Fast supply constraint simulations

14. Easily manipulate plans – Mass edits Quickly assess impact of engineering, demand, and supply changes • Simulate resource and capacity changes • Change resource availability • Change resource calendar • Simulate demand changes • Change existing demand • Enter new (high priority) demand • Simulate supply changes • Change existing supply • Enter new supply • Change manufacturing order resource requirements • Change manufacturing order operation networks • Mass edit item attributes • Mass edit key item attributes such as lead times and order modifiers • Change supply chain bill • Sourcing rules • Ship methods • Supplier lead times, capacity, calendar • Simulate the impact of engineering changes by editing: • Bills of materials • Routings

15. Simulate changes to demand and supply Simulate urgent “hot demand” Mass edit supplies

16. Simulate ECO cut-in Analyze ECO cut-in on Material Plan Mass edit BOM

17. Make better decisions faster Automate planning decisions and model the constraints of your supply chain Decisions Constraints • Fulfill demand with substitutes • End items • Components • Offload to alternates • Source (mfg sites, distribution centers, suppliers) • Routing • Bills of material • Resource • Ship method • Account for effectivity • BOM effectivity • Engineering change orders • Sourcing effectivity • Consider user-defined ranks and priorities • Order modifiers • Item, supplier • Lead times • Item, supplier, manufacturing • Planning time fence and calendars • Shipping, receiving, supplier, resource work days • Co- and by-products • Firm orders • Forecast spreading and consumption • Routings • Operation yield • Max assigned units • Resource efficiency

18. Oracle Rapid Planning Reduce planning cycle time and make faster short-term decisions • Empower planners with rapid what-if scenario planning • Use a more productive UI for insightful analytics • Make faster decisions through collaboration • Translate decisions into actions

19. Strong UI for improved planner productivity Highly configurable spreadsheet-style planner workspaces • Spreadsheet style UI • Personalization • Interactive analytics • Interactive what-if simulation • Fast plan copy • Compare multiple plans • Ad-hoc queries and filters • Sort on all columns • Mass edit • Find in work sheet • Planner collaboration • Export to MS Excel

20. Strong UI for improved planner productivity Highly configurable spreadsheet-style planner workspaces

21. Saved searches Edit demand and supply and enter new orders for simulation Strong UI for improved planner productivity Saved searches, mass edits, and quick order simulations Mass edit items Mass edit resources

22. Simultaneously view Supply Chain Bill and Material Plan

23. View KPIs and Material Plan

24. View Exceptions and Material Plan

25. Example: mass edit item changes

26. Monitor plan performance Review key performance indicators and exceptions • Compare plans • Compare performance indicators • Compare exceptions • Compare supply and demands • Compare material and resource requirements • Analyze plan exceptions and KPIs • Demand, supply, resource, and alternate usage exceptions • Large set of pre-built performance indicators • Drill down from KPIs to related exceptions • Flexible configuration • Exclude exceptions • View multiple exception types simultaneously • User-defined KPI sets and filters

27. Compare planning scenarios Enable key decision makers to evaluate planning output in corporate metrics Analyze specific product categories, organizations and resource groups Check your shipment and production trends Compare previous run to current run exceptions and metrics Integrated with Oracle Advanced Planning Command Center !

28. Oracle Rapid Planning Reduce planning cycle time and make faster short-term decisions • Empower planners with rapid what-if scenarios planning • Use a more productive UI for insightful analytics • Make faster decisions through collaboration • Translate decisions into actions

29. Multiple planners collaborate on a single plan • Work with a single holistic plan • Model all manufacturing and distribution facilities, include customers and suppliers • No alignment required between different supply plans • Planners run “sand-box” copies of “master” plan • Make fast copies • Group simulation changes and mass edits into simulation sets Personal Simulations Copy Simulation Sets ‘Master’ plan Copy Plan edits Simulated plans Plan copy

30. Oracle Rapid Planning Reduce planning cycle time and make faster short-term decisions • Empower planners with rapid what-if scenario planning • Use a more productive UI for insightful analytics • Make faster decisions through collaboration • Translate decisions into actions

31. Translate decisions to actions Rapid Planning Release planning recommendations via out-of-the-box integration to Oracle ERP • Quickly release order recommendations to Execution • Purchase orders (new, change, cancel) • Work orders (new, change, cancel) • Sales order recommendations • Release to multiple source systems • Out-of-the-box integration with Oracle ERP • Oracle E-Business Suite • JD Edwards EnterpriseOne* Orders Orders Orders ERP * Requires JDE E1 integration PIP

32. Global Order Promising Demand Management Production Scheduling Strategic Network Opt Collaborative Planning Inventory Optimization Complements Value Chain Planning capabilities Common foundation: quick ROI when deploying incremental components Firm production schedules Supply plan Firm production schedules Supply plan RAPID PLANNING Advanced Supply Chain Planning Supply scenarios Simulation results Supply plan Advanced Planning Command Center Sourcing rules Supply scenarios ATP plan Reservations Order forecast Supply commits Inventory scenarios Demand scenarios Sales and Operations Planning Demand scenarios Demand scenarios Collections Release Work orders Purchase orders Sales orders Master data Changes to work orders purchase orders sales orders ERP/ Legacy Available with Rapid Planning 1.0 Targeted for Rapid Planning 1.1 Targeted for Rapid Planning beyond 1.1

33. <Insert Picture Here> Comparison with ASCP 37

34. Comparison with ASCPSolution methodology Rapid Planning ASCP • Single pass • Constructive heuristic • No mathematical programming • Pegging is post-process • FIFO only • No cross-pegging • Incremental solve • Output created demand by demand • Freeze existing output, add changes (e.g., “hot demands”) on top • Safety lead time • No detailed scheduling • Resource capacity at day level • Day boundaries for resource loading • 3 phases • Supply Chain Optimization (linear program), Memory-Based Planner, High Level Scheduler • Embedded pegging • In middle (MBP) solution phase • FIFO or priority-based Quantity-based safetystock targets • Bulk solve • SCO must first solve to completion, then provides output in its entirety • Quantity-based safety stock targets • Detailed scheduling • Minute-level resource capacity

35. Comparison with ASCPFunctional comparison Rapid Planning ASCP • Designed for rapid simulation • Fast one-pass heuristic • Simulation results in memory • Quickly edit planning inputs (demands/supplies, BOMs, routings, etc.) for simulation • UI: mass edits, plan compare • Multi-plan collaboration • Merge changes from multiple plans into single master plan • Planning modes • Unconstrained, Enforce Capacity Constraints • Enforce Demand Due Dates after initial release • Decision rules only, no cost optimization • Limited process, project mfg support • Batch planning oriented • Multi-phase, math programming • Simulation results flushed to database • Make changes on transaction source instance, re-collect • No mass edits; plan compare requires Advanced Planning Command Center • Single-plan collaboration • Multiple planners must work on same plan • Planning modes • Unconstrained, Enforce Capacity Constraints, Enforce Demand Due Dates • Optional cost-based optimization • Process manufacturing support • Project manufacturing support

36. Customer ProfileRapid Planning Target Industries Rapid Planning is a good fit in industries that have: • Volatile demand • Variability in execution • Frequent engineering change orders • Short product life cycles (numerous NPI) Supply Chain Attributes: • Discrete manufacturing • Internal or outsourced manufacturing • Minimal DRP requirements • Mfg of Electronics • Mfg of Medical Equipment • Semiconductor (outsourced mfg) • Communications • Mfg of Machinery • Note: • No support for detailed scheduling constraints (Process manufacturing) • No support for project netting (A&D) • Not suited for distribution oriented industries (CPG) • No shelf-life planning (Life Science, Med-Device)

37. High Value Questions & Issues Questions to ask VP of Supply Chain or Operations • Have your customers expressed dissatisfaction with your ability to respond to their changing requirements? • How often do you run supply chain planning? The longer the interval, the better the opportunity for RP to provide benefits between planning cycles • How long does it typically take to respond to a customer inquiry for a large potential order? • Are you able to determine the impact of such a change in demand beforehand? • How quickly can you determine impact of a shortfall from a vendor or subcontractor? • Has variability in execution impacted your on-time deliveries? • Are you able to perform full stream supply and capacity evaluations during your S&OP process?

38. Rapid Planning Deployment Environments Customers Who: • Using ASCP • Knowledgeable & sophisticated users • Challenging planning environment, looking for simulation capabilities • Purchased ASCP but never implemented • ASCP purchase was driven by IT not business • Difficulty gaining user acceptance • Still running MRP/Spreadsheets • Users typically lack advanced planning skills • Organization struggles with change

39. Rapid Planning with ASCP installedRapid Planning Deployment Environment Key Points • ASCP CAB members have been asking for a quick simulation tool to complement ASCP • Need for speed and flexibility • Mass edit data for simulation what-if • Enables quick response to changes without sending shock waves through the entire supply chain • Very short learning curve for users with ASCP knowledge • Out of box integration makes implementation time significantly shorter than competition for fast ROI • Uses same data collection as ASCP • Use of RP will help planners see the value of embracing all of ASCP capabilities (many companies only run unconstrained)

40. Rapid Planning, own ASCP but not installedRapid Planning Deployment Environment Key Points • User acceptance is often a major obstacle to successful planning tool implementations • Intuitive UI provides simple navigation • What-if capability provides short cycle of learning for planner • User can experiment with inputs and quickly see results which speeds their understanding and acceptance of RP • Can gain a year’s worth of experience in two days • Simplified engine is easier for planners to grasp • Using RP will help planners see the value of using ASCP and RP in tandem • Knowledge of RP will help them understand strengths of ASCP • Using full features of ASCP will not seem as daunting • Creates opportunity to use additional VCP products

41. Running MRP/SpreadsheetsRapid Planning Deployment Environment Key Points • RP is a perfect stepping stone to move from unconstrained single org to multi-org constrained planning for customers that are now not moving beyond the traditional MRP paradigm. • Short cycle of learning and great UI will motivate risk adverse users to migrate from MRP • User can experiment with inputs and quickly see results which speeds their understanding and acceptance of RP • Simplified engine is easier for planners to grasp • Built-in analytics and integration with APCC aids change management • RP then can also be the stepping stone to an even richer planning tool like ASCP once their organization is ready for it. • Getting RP positioned opens the door for the use of Demand Management, Sales and Operations Planning, Advanced Planning Command Center, and of course ASCP and CBO

42. WEB SERVICES Flexible deployment, modern architecture UI (ADF) Planning Engine and Cache Manager ERP CANONICAL DATA MODEL SIMULATION PLANS COLLECTIONS Legacy • Customers can deploy Rapid Planning: • Integrated with Oracle EBS and APS 11i10, 12.0, and 12.1 • Integrated with Oracle JD Edwards E1 9.0 (via VCP-JDE E1 Integration PIP) • Standalone against legacy systems

43. <Insert Picture Here> Summary

44. Oracle Rapid Planning Enabling event driven real-time planning • Empower planners with rapid what-if scenario planning • React quickly to supply chain events with fast incremental plan runs – make decisions in minutes • Easily manipulate plan (mass edits) • Enable fast sales and operations planning simulations • Leverage a strong UI for insightful analytics • Predictive and actionable insight via embedded analytics and spreadsheet-style UI • Compare exceptions and key performance indicators • Make faster decisions through collaboration • Planners collaborate on a single holistic plan • Multi-enterprise visibility and planning • Translate decisions into actions • Out-of-the-box integration with ERP • No latency: release directly to execution

45. Key takeaways • Provides superior UI experience for highest planner productivity • Enables significant value by enabling real-time planning • Reduces planning cycle time by providing a fast what-if environment • Enables you to react quickly to supply chain disruptions • Complements your existing planning solution • Augments your tactical planning solution, no need to replace • Leverages your existing Oracle and Value Chain Planning infrastructure • Provides lower cost of ownership and deploy quickly • Pre-built integration with Oracle EBS and JDE EnterpriseOne

46. Questions Thank you!